Inflation Just Fell — Rate Cuts Coming? 👀

September’s CPI report just flipped the Fed’s rate strategy on its head. Inflation came in softer than expected at 3.0% year-over-year, with monthly prices rising 0.3% — and that was enough to send markets surging. Core CPI, which excludes food and energy, also clocked in at 3.0%, matching the headline number. Gasoline rose 4.1% on the month, but shelter costs — roughly one-third of the CPI — barely budged, up just 0.2%. The softer-than-expected data immediately sent Treasury yields lower and stocks higher, with traders now pricing in a 100% chance of a quarter-point Fed rate cut next week. Another cut in December is now likely on the table. Even though inflation remains above the Fed’s 2% target, this report gives Jerome Powell and policymakers the cover they need to start easing rates while maintaining employment stability. If inflation stays tame, the Fed could be setting up the first true rate-cut cycle since 2020. #CPI #Inflation #FederalReserve 🖥️ Try Benzinga Pro FREE with a 14 day trial: https://www.benzinga.com/pro/register 📈 Take your trading to the next level with our suite of premium research services and tools: https://www.benzinga.com/services 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 📲 Follow us on socials @benzinga ------------------------------------------------------------------------------------ 🔹Free Benzinga Webinars: https://www.youtube.com/watch?v=LQ2jOJNkDfI&list=PL4k0fH8EgI3YTdqniRmxrvz97w3IQ61rD 🔹Benzinga Pro Tutorials: https://www.youtube.com/watch?v=a2FaHhLIrks&list=PL4k0fH8EgI3YMwoBMFXGvVMkgixFymmei&pp=gAQB 🔹Earnings Calls: https://www.youtube.com/watch?v=C2-AoCw64Ok&list=PL4k0fH8EgI3buZI5529R53wJUNd9NS4_s 🔹Premarket Playbook: https://www.youtube.com/playlist?list=PL4k0fH8EgI3ZVRPM7INpG--GvohnBVTnT 🔹Benzinga's All Access: https://www.youtube.com/playlist?list=PL4k0fH8EgI3bQSn91atO-3lPT4V6Nwsmh 🔹Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.